Don't like this heading nearly as much, but it's the truth. I really thought that those earnings deserved better. Yes, the market was shitty today (and the last month), but other stocks I owned today that reported well today or yesterday had good days: GIGM / JST, so I don't know if the PPS performance today can be solely blamed on the market. I think IGLD just needs to get the word out on its stock a little more. Need more overall interest to drive the PPS to match its steller growth of earnings. This volume just isn't going to do it. I will buy more on weakness, but am basically maxed out in terms of what I like to hold in an individual position, which is a shame.
I am just glad that it did not drop $2 in this weak market. On a fully diluted basis (24.9 million shares) Igld should have a cash flow of around $1.76 per share for 2007. With the fulled diluted sare count Igld will pick around $30 million in cash to reduce debt. I will wait for the Dutton report to see total debt and any revisions to earnings.
So at $11.35 Igld is selling at a 6.44 multiple of 2007 cash flow based on 24.9 million shares.
If we use the share count as of Jul 31, 2007 of 22,168,198 shares the cash flow will be $1.98 per share and Igld will be selling at a multiple of 5.73 at the current stock price.
In this kind of market a telephone and E-Commerce company is a safe bet.